Chinese stocks remain green on news of service sector slowdown
The Chinese stock market still recorded green in the morning session of June 3 after the news that the country’s service industry slowed down in May.
|The Shanghai Composite Index gained 0.38% in the morning session of June 3. Photo: AFP|
Opening the morning session of June 3, “red floor”, but mainland Chinese stocks quickly reversed and gained. The Shanghai Composite Index inched 0.38% to 3,610.67 while the Shenzhen Component also returned to the green with a gain of 0.45% to 14,925.07 points, although it previously recorded a decline of 0.323%.
On the Hong Kong market, the Hang Seng index dropped 0.28% to 29,215.48 points.
The results of a private survey released this morning showed that China’s service sector growth rate slowed down in May. The Caixin/Markit Purchasing Managers’ Index (PMI) in China’s service industry only reached 55.1 in May, lower than the 56.3 in April. A PMI above 50 reflects the industry/sector. growth during the survey period.
In the Japanese stock market, the Nikkei 225 index gained 0.4% while the Topix index gained nearly 1%. South Korea’s Kospi index gained 0.64%.
Australian stocks this morning continued to gain when receiving more positive information from the retail market. The S&P/ASX 200 index rose 0.73% after the Australian Bureau of Statistics reported that the country’s April retail sales rose 1.1% month-on-month, on a seasonally adjusted basis.
Before, Australian Bureau of Statistics yesterday announced Australia’s GDP in the first quarter of 2021 increased by 1.8% compared to the previous quarter. The growth beat expectations for a 1.5% increase given in a recent Reuters poll.
A representative of the Australian Bureau of Statistics assessed that, with a growth rate of 1.8% in the first quarter of 2021, Australia’s economic activity had recovered above pre-pandemic levels, when the Australian economy had grown at 1 1% for the whole year.
Overall, the MSCI Asia-Pacific index (excluding Japan) this morning still inched about 0.2%.
US stocks rose slightly last night. The Dow Jones Industrial Average closed up 25.07 points at 34,600.38 while the S&P 500 edged up 0.14% to 4,208.12. The tech-heavy Nasdaq Composite Index rose 0.14% to 13,756.33 points.
In the currency market, the US dollar index against other major currencies slipped to 89.916, after hitting 90.1. The Japanese yen remained weak this morning and traded at 109.64 JPY/USD, compared to 109.5 JPY/USD recorded at the beginning of the week, while the Australian dollar appreciated compared to yesterday and changed hands by 1 AUD. eat” $0.7742.
Oil prices traded in Asia this morning continued to rise. Brent crude futures were up 0.46% to trade at $71.68 per barrel while US crude futures were up 0.48% to $69.16 per barrel.